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The Building and Construction Authority (BCA) has extended the ex-gratia cost-sharing scheme for diesel and bitumen costs in ongoing critical public sector construction contracts until 31 December 2026, in response to continued price pressures linked to the Middle East conflict.
Under the extended scheme, Government Procuring Entities (GPEs) will continue to share 50% of eligible direct additional costs incurred by contractors during the covered period from 1 March to 31 December 2026.
The BCA circular issued on 30 September 2026 also introduces deadlines for contractors to submit claims:
- March to June 2026 costs: Submit by 31 December 2026.
- July to September 2026 costs: Submit by 31 March 2027.
- October to December 2026 costs: Submit by 30 June 2027.
The existing cost-sharing rate, eligibility requirements, claims procedures and pass-down arrangements remain unchanged from the earlier BCA circular dated 29 July 2026.
Contractors involved in eligible public sector projects should review their additional diesel and bitumen costs, maintain the necessary supporting records and submit claims within the applicable deadlines. Timely cost tracking and claims management can help contractors manage the financial impact of continued material and fuel price fluctuations.
Reference
- WongPartnership LLP (October 2026). BCA Further Extends Ex-Gratia Cost Sharing for Diesel and Bitumen Until 31 December 2026. Energy, Projects & Construction.
- Original source: WongPartnership LLP
Disclaimer: This summary is for general information only and does not constitute legal advice. Contractors should refer to the relevant BCA circulars and seek professional advice where necessary.
